BYD quarterly profit rises 28% to 10.02 billion yuan, below expectations
Key Facts
Net profit attributable to BYD shareholders rose 28% to 10.02 billion yuan in the third quarter of 2026, while revenue increased 13.6% to 221.49 billion yuan, according to company results reported by Investing.com. Profit came in below estimates from three brokerages compiled by Reuters, which ranged from 11.4 billion to 12.95 billion yuan. Earnings per share also rose 29% to 1.10 yuan. The quarterly performance reflected an improvement in revenue after a period of contraction, but did not reach the profit level analysts had expected. The stock fell in Hong Kong after the results, before trimming its losses during the session.
Net profit growth slowed from a 30% increase in the second quarter, while revenue rose 13.6% in the third quarter after falling 3% year on year in the previous quarter. The company thereby ended four consecutive quarters of revenue contraction. But the cumulative picture for the first nine months was weaker: net profit fell 4.2% to 22.34 billion yuan, while revenue was little changed at about 566.30 billion yuan. Profit excluding non-recurring items rose 25% to 8.63 billion yuan in the third quarter. Non-recurring items added 1.39 billion yuan to earnings for the period, leaving adjusted profit below reported net profit.
On cash flow, operating cash flow rose 33% to 54.47 billion yuan in the first nine months, according to company data cited by Investing.com. Meanwhile, financial expenses turned into 7.37 billion yuan for the period, compared with a net financial gain of 2.94 billion yuan a year earlier. The report attributed the shift to foreign-exchange losses. Construction in progress rose 64% to 79.18 billion yuan as of September 30 compared with the end of 2025. Bonds payable also doubled to 15 billion yuan as the company financed its expansion.
International business growth came as the company faced a decline in China. BYD sold about 1.3 million vehicles in the third quarter, with international sales accounting for about 42% of the total after rising 137% year on year to 550,704 vehicles. In global sales, the company recorded an 18.8% increase to more than 1.32 million vehicles, with overseas shipments more than doubling from their previous level and helping offset weak sales in China. However, sales in China fell about 12% during the quarter amid fierce local competition. Reuters said the company had relied on overseas markets to counter weak demand and intense price competition in its domestic market.
October data showed sales continued to grow for a sixth consecutive month, but at a slower pace than in September. Vehicle sales rose 11% year on year to 490,168 units, compared with a 17% increase the previous month. Meanwhile, overseas shipments jumped 102.8% to 170,194 vehicles, according to Reuters calculations based on a company filing. BYD announced on November 1 that October sales totaled 490,168 vehicles and that total sales from January to October reached 3,621,744 vehicles. The figures highlight continued export growth alongside a slowdown in the overall sales growth rate.
In the October 30 session, BYD shares fell as much as 2.4% in Hong Kong trading before trimming their losses to 0.5% at the midday break, according to a report by Investing.com citing Reuters. Auto analyst Felipe Munoz said the company’s rapid expansion was slowing as other Chinese companies entered export markets, adding: "Competition for BYD is increasing in export markets. The coming quarters will be tougher for the company." BYD is seeking regulatory approval to double the annual production capacity of its factory in Brazil to 600,000 vehicles. Executive Vice President Stella Li said geopolitical risks were the biggest challenge to the company’s international growth.